In a bid to set up a lighting products plant in China, India-based electrical goods maker, Havells India Lighting, has formed a 50:50 joint venture with China’s Shanghai Yaming Lighting. The venture is named as ‘Jiangsu Havells Sylvania Lighting Co. Ltd’ and would entail an investment of USD 50 million. The company expects to earn revenues of USD 100 million (approximately Rs 530 crore) in three years through this venture.
“We are also planning to expand margins globally through this joint venture,” said Anil Gupta, Joint MD at Havells India.
Gupta told NDTV Profit that the first phase of production from Yaming Lighting joint venture will start in April 2012. He feels that the venture will bring in manufacturing expertise, manpower to the company.
“The venture will produce energy-efficient and green lighting products for the Chinese and international markets,” he said adding that the bulk of the products will be used for global markets in the initial stages.
He is confident that their brand Sylvania will source products through this venture. He expects the demand for these products to grow in the Chinese market.
The company is also looking at African markets for organic as well as inorganic growth.
Shares of Havells India hit a high of Rs 403.95 on the BSE in the early morning trade on Tuesday; but couldn’t sustain gains. In the period of six months, the stock rose 2.18 per cent, while the BSE Sensex index declined 13.60 per cent during the same time.
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